Sensex dips to 14-month low, investors lose Rs 1.3 lakh crore

The benchmark Sensex of the Bombay Stock Exchange tanked 702 points intra-day on Friday, before recovering somewhat to close at a 14-month low of 17,306, down 387 points, or 2.2%, as investors pressed the panic-selling button on fears of a possible recession in the US and debt problems in the eurozone.

Worldwide, stocks sank for an eighth straight session, wiping $2.5 trillion off their value on the week; Indian investors lost Rs 1.3 lakh crore as the markets went into a tailspin following global cues. The broader Nifty also plunged by 120.6 points, or 2.3% to close at 5,211.3.

IT stocks were the worst hit among sectoral losers on fears that a possible double-dip recession in the US could hurt their revenues. "There are fears of another recession in the US and a debt crisis in Europe," Infosys CEO and managing director S Gopalakrishnan told HT.

As investors moved money out of stocks into gold, the yellow metal touched an all-time high of Rs 24,350 for 10 grams.